Machine Learning Global Market Report 2025

Machine learning is a subset of artificial intelligence that revolves around the creation of algorithms enabling computers to learn from data, recognize patterns, and generate predictions or decisions without explicit programming. The core objective is to develop models that enhance their performance over time through exposure to additional information, emphasizing the capacity for autonomous learning and adaptation.

The primary components of machine learning include hardware and software. Hardware tools encompass physical devices and equipment tailored for specific tasks or functions in diverse fields such as construction, manufacturing, or electronics. These tools facilitate the processing of large datasets and complex neural network architectures, thereby improving the performance and scalability of machine learning applications. Machine learning is deployed both in the cloud and on-premises, catering to the needs of large enterprises, small and medium enterprises, and is utilized across various sectors, including healthcare, retail, BFSI (Banking, Financial Services, and Insurance), manufacturing, IT & telecom, energy & utilities, agriculture, automotive, as well as marketing and advertising.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.

The machine learning market research report is one of a series of new reports from The Business Research Company that provides machine learning market statistics, including machine learning industry global market size, regional shares, competitors with a machine learning market share, detailed machine learning market segments, market trends and opportunities, and any further data you may need to thrive in the machine learning industry. This machine learning market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The machine learning market size has grown exponentially in recent years. It will grow from $68.88 billion in 2024 to $93.73 billion in 2025 at a compound annual growth rate (CAGR) of 36.1%. The growth in the historic period can be attributed to advancements in algorithms, increasing data availability, computing power enhancement, industry adoption and integration, iot and edge computing integration.

The machine learning market size is expected to see exponential growth in the next few years. It will grow to $325.8 billion in 2029 at a compound annual growth rate (CAGR) of 36.5%. The growth in the forecast period can be attributed to explainability and ethical ai concerns, exponential data growth, expansion of edge computing, growing integration of ai and ml, global demand for predictive analytics. Major trends in the forecast period include continued algorithmic innovations, rise of big data technology, automated machine learning (automl), federated learning, integration of ml with other technologies, industry-specific ml solutions.

The forecast of 36.5% growth over the next five years reflects a slight reduction of 0.2% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. Machine learning applications may face computational slowdowns and cost hikes due to tariffs on imported GPU accelerators and AI training infrastructure. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The increasing adoption of cloud-based platforms is expected to be a driving force behind the growth of the machine learning market. Cloud-based platforms, delivering computing services and resources over the internet, provide users with access to applications, storage, and processing power without the need for physical infrastructure or hardware. These platforms not only facilitate collaboration by allowing multiple users to work on projects simultaneously but also enable seamless integration with other cloud services. According to Ofcom, a UK-based Government office, the UK's cloud infrastructure market was valued between approximately £7.0 billion to £7.5 billion in 2022. Moreover, in 2023, 41.4% of global tech and business leaders are planning to increase their investment in cloud-based services and products, highlighting the significant role of cloud adoption in driving the growth of the machine learning market.

Key players in the machine learning market are directing their efforts toward automated machine learning tools to streamline and automate the machine learning process. These tools aim to automate model selection, training, and deployment, making machine learning more accessible to individuals and organizations with limited expertise in the field. AND Solutions Pte Ltd., a Singapore-based fintech company, exemplifies this trend with the launch of the NIKO AutoML platform in April 2023. NIKO AutoML is an innovative machine-learning tool designed to simplify and expedite the creation of prediction models. The platform offers a user-friendly interface, guiding users through each stage of the process, and provides optimal results in a fraction of the time compared to traditional approaches. Key benefits of NIKO AutoML include fast and accurate model creation, streamlined workflows, increased productivity, and cost-effectiveness.

In May 2023, Infineon Technologies AG, a Germany-based semiconductor manufacturing company, made a strategic move by acquiring Imagimob AB for an undisclosed amount. This acquisition strengthens Infineon Technologies AG's position as a leading machine learning solution provider and significantly expands its portfolio of artificial intelligence (AI) products. Imagimob AB, based in Sweden, specializes in providing a platform for developing machine learning models for edge devices, aligning with the growing trend of edge computing in the machine learning landscape.

Major companies operating in the machine learning market report are Google Inc., Microsoft Corporation, Amazon Web Services Inc., International Business Machines Corporation, SAP SE, Hewlett Packard Enterprise Development LP, Baidu Inc., Intel Corporation, SAS Institute Inc., Fair Isaac Corporation, Alteryx, Dataiku, H2o.AI, KNIME.com AG, Alpine Data, Peltarion, RapidMiner Inc., BigML Inc., Luminoso Technologies Inc., Turing Analytics

North America was the largest region in the machine learning market in 2024. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the machine learning market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the machine learning market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The machine learning market includes revenues earned by entities by predictive analytics, natural language processing, image and video recognition, speech recognition, recommendation systems and anomaly detection. The market value includes the value of related goods sold by the service provider or included within the service offering. The machine learning market consists of sales of graphics processing units (GPUs), application-specific integrated circuits,edge AI processors and others. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Machine Learning Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on machine learning market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for machine learning ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The machine learning market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Component Outlook: Hardware; Software
• 2) By Deployment: Cloud; On-Premises
• 3) By Type: Large Enterprises; Small And Medium Enterprise
• 4) By End-User: Healthcare; Retail; BFSI; Manufacturing; IT And Telecom; Energy And Utilities; Agriculture; Automotive; Marketing And Advertising
• Subsegments:
• 1) By Hardware: Graphics Processing Units (GPUs); Application-Specific Integrated Circuits (ASICs); Field Programmable Gate Arrays (FPGAs); Central Processing Units (CPUs); Memory And Storage Devices
• 2) By Software: Machine Learning Frameworks And Libraries; Data Processing And Analytics Tools; Model Development Platforms; Deployment And Integration Software; Pre-Built AI Solutions
• Companies Mentioned: Google Inc.; Microsoft Corporation; Amazon Web Services Inc.; International Business Machines Corporation; SAP SE; Hewlett Packard Enterprise Development LP; Baidu Inc.; Intel Corporation; SAS Institute Inc.; Fair Isaac Corporation; Alteryx; Dataiku; H2o.AI; KNIME.com AG; Alpine Data; Peltarion; RapidMiner Inc.; BigML Inc.; Luminoso Technologies Inc.; Turing Analytics
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.